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Bonus systems in an open portfolio

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Detalhes bibliográficos
Resumo:In this paper, we study bonus systems in an open portfolio, i.e. we consider that a policyholder can transfer his policy to a different insurance company at any time. We make use of inhomogeneous Markov chains to model the system and show, under reasonable assumptions, that the stationary distribution is independent of the market shares, and is easily calculated.
Autores principais:Centeno, Maria de Lourdes
Outros Autores:Silva, João Andrade e
Assunto:Bonus Systems Markov Chains Stationary Distribution
Ano:2001
País:Portugal
Tipo de documento:artigo
Tipo de acesso:acesso aberto
Instituição associada:Universidade de Lisboa
Idioma:inglês
Origem:Repositório da Universidade de Lisboa
Descrição
Resumo:In this paper, we study bonus systems in an open portfolio, i.e. we consider that a policyholder can transfer his policy to a different insurance company at any time. We make use of inhomogeneous Markov chains to model the system and show, under reasonable assumptions, that the stationary distribution is independent of the market shares, and is easily calculated.